If an investor has a fixed investment horizon, what type of security can be used to minimize both the price risk and the reinvestment risk?

Answers

Answer 1

Answer:

A zero coupon treasury bond

Explanation:

A zero coupon treasury bond having a maturity period matching the investment horizon of an investor can minimize both price risk and reinvestment risk.  Reinvestment risk in case of a bond refers to reinvestment of the cash flows from the bond at a return close to current investment rate of return. As a zero coupon treasury bond do not pay any coupon payment, it won't carry any reinvestment risk.  

The bond holder in case of a zero coupon treasury bond, receives a guaranteed payment at maturity of the bond. This payment is equal to face value or par value of the bond. Price risk (increase or decrease in a bond value due to interest rates) matters if a bond is sold before maturity.. However, on selling a bond at its maturity, price risk won't matter as the payment will be equal to face or par value.


Related Questions

Juan and Carl have a small medical practice that operates as a partnership. Juan does 70% of the work and Carl does 30%. However, Carl invested 60% of the money required to start the business. If the company makes $100,000 in profit this year, how much will each partner receive?
a. Juan will receive $70,000; Carl will receive $30,000.
b. Juan will receive $50,000; Carl will receive $50,000.
c. Juan will receive $40,000; Carl will receive $60,000.
d. Juan will receive $60,000; Carl will receive $40,000.
e. Profits will be shared in the proportion specified in the partnership agreement.

Answers

Answer:

e. Profits will be shared in the proportion specified in the partnership agreement.

Explanation:

Partnership agreement is the governing document of an partnership. The agreement consist of how profit will be shared and has been agreed right before the partnership contract become become binding. Thus, the fact that Juan does 70% of the work and Carl does 30% of work does not specifies nor idicate profit sharing. Also, the fact that Carl invested 60% of the money required to start the business does not specify profit sharing as well. The profit sharing agreement is in the partnership agreement.

As a student of Business Ethics and a managing director of a multinational company, discuss five (5) factors you will consider in managing the multi-cultural and diversified workforce in Ghanaian business organizations.

Answers

Communication, ethics, conflict management, learning, and inclusion are some issues to consider when leading a multicultural and diversified workforce in Ghanaian business organizations.

How do you lead a multicultural team?

In order to foster a culture that celebrates variety and individuality, it is crucial that there be a number of rules and procedures that concentrate on organizational ethics. The manager must be aware of the requirements of the teams, encourage learning, and include the staff in organizational procedures.

Therefore, the sharing of knowledge, learning, and creativity can benefit from a diverse culture.

To learn more about the multicultural team here: https://brainly.com/question/27249388

#SPJ10

The Davis family grows organic vegetables to sell at a local farmer’s market. Which are factors that directly affect their profit? Check all that apply.

an increase in the cost of farm equipment
a rise in demand for organic produce
an increase in customers at the market
a change in the market price for non-organic fruit
a sale on organic meats at the market

(answer is abc)

Answers

Answer:

an increase in the cost of farm equipment

Explanation:

With the Davis family continuously growing and selling vegetables they would need to repair or get new equipment

Answer:

a b c

Explanation:

If Amelia would like to double her money in twelve years, how much interest does she need to earn O 12 percent O 16.6 percent O 6 percent 10 percent​

Answers

Out of the given answer choices, the interest rate that Amelia needs to earn to double her money in twelve years is 16.6 percent.

To find out how much interest Amelia needs to earn to double her money in twelve years, we need to use the compound interest formula.

This formula is used to determine the future value of an investment based on the principal, the interest rate, the number of compounding periods, and the time involved.
The formula is as follows: FV = PV x (1 + r/n)^(n*t)where FV = future value, PV = present value (the amount of money Amelia currently has), r = annual interest rate, n = number of times the interest is compounded per year, and t = time in years.

To double her money, Amelia needs to have a future value that is twice her present value. Therefore, we can set FV = 2PV and solve for r.

2PV = PV x (1 + r/n)^(n*t)Dividing both sides by PV, we get:2 = (1 + r/n)^(n*t)

Taking the natural logarithm of both sides, we get: ln(2) = ln[(1 + r/n)^(n*t)]

Using the power rule of logarithms, we can simplify the right side of the equation to ln(2) = (n*t) ln(1 + r/n)

Dividing both sides by (n*t), we get:ln(2) / (n*t) = ln(1 + r/n)

Finally, we can solve for r by raising both sides as the power of e: e^(ln(2) / (n*t)) = 1 + r/n

Subtracting 1 from both sides and multiplying by n, we get:r = n x (e^(ln(2) / (n*t)) - 1)

Plugging in the values given, we get:r = n x (e^(ln(2) / (n*12)) - 1)

We don't know the value of n, so we can try each of the answer choices to see which one gives us a value of r that works.

Using a financial calculator or a spreadsheet program like Excel, we can calculate the values of r for each interest rate.

Using 12 percent: r = 1 x (e^(ln(2) / (1*12)) - 1) = 0.0956 or 9.56 percent

Using 16.6 percent: r = 1 x (e^(ln(2) / (1*12)) - 1) = 0.1407 or 14.07 percent

Using 6 percent: r = 1 x (e^(ln(2) / (1*12)) - 1) = 0.0488 or 4.88 percent

Using 10 percent: r = 1 x (e^(ln(2) / (1*12)) - 1) = 0.0794 or 7.94 percent

For more such questions on interest rate

https://brainly.com/question/29451175

#SPJ8

Problem 5-2A Record transactions related to credit sales and contra revenues (LO5-1, 5-2)

Answers

Credit sales allow the customer to pay the seller at a later date. Whereas, contra revenue is known to be a deduction from the gross revenue reported by a business.

Credit sales are also known as sales made on the account. Credit sales are sales where the payout is done after delivery of goods with period of time which is thus agreed upon by both parties.

There are the contra revenue accounts which tend to appear near the top of the income statement, it appears as a deduction from gross revenue. A contra revenue tends to carry a debit balance, rather than the credit balance.

Hence, credit sales are purchases which are made by customers for which the payment is delayed.

To learn more about credit sales here:

https://brainly.com/question/14279491

#SPJ1

100 points) The seasonal demand for a particular product is given below:
Period 1 2 3 4 5 6
Demand 300 450 100 450 450 100
The fixed parameters are:
Fixed Cost $8
Unit Production Cost $1
Holding Cost $ 1.3
Calculate total ordering cost using following three methods:
i) Lot-for-Lot
ii) Wagner-Whitin algorithm
iii) Fixed order quantity
Which method you will chose to order and why

Answers

The ordering cost using the Lot-for-Lot method is $900.06. DOQ (Discrete Order Amount) is a lot sizing approach in which the net requirements happening for each period are the quantity of order. This strategy is commonly utilized for pricey commodities and items with sporadic demand.

How to calculate the cost?

The ordering cost using the Lot-for-Lot method will be calculated thus:

C = Q/2(H) + D)Q(S)

C = 450/2(4) + 100/450(3)

C = 450(2) + 30/45

C = 900 + 0.7

C = $900.7

The ordering cost using the Wagner-Whitin algorithm will be:

= 300 + 900 + 300 + 1700 + 2150 + 600

= $5750

Wagner-Whitin devised an algorithm to determine the appropriate lot size for each period when net demands for several periods in the future are known.

The ordering cost using fixed order quantity will be:

= 6/(300 + 450 + 100 + 450 + 450 + 100)

= 6/1850

= 0.00324

FOQ (Fixed Order Quantity) is a method for determining the amount for size and is abbreviated as FOQ. The Net Requirements are scaled in this technique by establishing the FOQ value as an Order Quantity and fixing the quantity.

Learn more about Lot-for-lot:

https://brainly.com/question/136515781

#SPJ1

Write an elevator pitch for someone that will start their own beauty salon/barber shop

Answers

An effective technique to introduce your company's goals and pique interest in your goods or services is through an elevator pitch. A compelling pitch will draw in potential.

Product: What does that mean?

The object being sold is referred to as a product. A service or even an object both qualify as products. It might take on a physical, virtual, or cyber form. Every product has a cost associated with it, and each one has a price.

Is a remedy a thing?

The easiest way to distinguish between a product and a solution is to say that a product is what you have made and what it is capable of. A business outcome who offers your clients quantifiable value is a solution.

To know more about products visit:

https://brainly.com/question/29515100

#SPJ1

price an investor pays to purchase outstanding bond

Answers

The price an investor pays to purchase an outstanding bond is typically referred to as the "purchase price" or "transaction price." This price is determined by various factors, including the bond's face value, coupon rate, current market interest rates, and the remaining time to maturity.

When a bond is traded on the secondary market, its price may differ from its face value. If the bond's coupon rate is higher than the prevailing market interest rate, the bond may be sold at a premium, meaning the purchase price will be higher than the face value. Conversely, if the coupon rate is lower than the market interest rate, the bond may be sold at a discount, and the purchase price will be lower than the face value.

The purchase price of a bond is influenced by supply and demand dynamics, credit rating changes, economic conditions, and investor sentiment. It is important for investors to consider these factors when determining the price they are willing to pay for an outstanding bond in order to achieve their desired yield or return on investment.

For more such answers on price

https://brainly.com/question/27815322

#SPJ8

In San Francisco, city regulations cap taxi licenses at 1500, creating a system in which demand for taxis exceeds supply and customer service is inadequate. Group of answer choices Strength Weakness Opportunity Threat

Answers

Answer: Opportunity

Explanation:

SWOT simply stands for the strengths, the weaknesses, the opportunities, and the threats that a particular business may face. Strengths are the attributes that are necessary to achieve organizational goals and to be successful.

Weaknesses are the attributes that re detrimental to the success of the company or achieving organizational goals.

Opportunities are the external factors that are favorable which can give a competitive advantage to an organization or allow the organization achieve its goals. Threats could hinder the success of the company.

Based on the analysis, the answer is Opportunity.

aRhonda owns an office building that has an adjusted basis of $45,000. The building is subject to a mortgage of $20,000. She transfers the building to Miguel in exchange for $15,000 cash and a warehouse with an FMV of $50,000. Miguel assumes the mortgage on the building. Required: What are LaRhonda realized and recognized gain or loss

Answers

LaRhonda realized and recognized gain or loss are: $45,000; $35,000.

a.  LaRhonda realized gain:

Using this formula

Realized gain = (Cash + Fair market value of building + Mortgage) - Adjusted basis

Let plug in the formula

Realized gain = ($15,000 + $50,000 + $20,000) - $45,000

Realized gain = $85,000-$45,000

Realized gain = $40,000

b. LaRhonda recognized gain or loss

Using this formula

Recognized gain = Cash + Mortgage

Let plug in the formula

Recognized gain =$15,000 +$20,000

Recognized gain= $35,000

Inconclusion LaRhonda realized and recognized gain or loss are: $45,000; $35,000.

Learn more here:

https://brainly.com/question/15176463

Consider the organization you are currently working in and explain this organization from systems characteristics perspectives particularly consider objective, components (at least three) and interrelationships among these components with specific examples

Answers

Explanation:

I don't have direct knowledge of the organization you are currently working in. However, I can provide a general example to help illustrate the systems characteristics of an organization. Let's consider a fictional manufacturing company called "ABC Manufacturing."

Objective:

The objective of ABC Manufacturing is to efficiently produce and deliver high-quality products to its customers while maximizing profitability. The organization aims to maintain a competitive edge in the market by consistently meeting customer demands and optimizing its operations.

Components:

1. Human Resources: The employees of ABC Manufacturing form a crucial component. They include production workers, managers, engineers, and support staff. Each employee contributes their skills and expertise to ensure smooth operations. For example, production workers assemble products, engineers design new prototypes, and managers oversee the overall functioning of the organization.

2. Production Facilities: The physical infrastructure, including factories, warehouses, and equipment, is another vital component. These facilities house the production lines, machinery, and storage areas necessary for manufacturing products. The efficient functioning of the production facilities is essential to meet production targets and ensure the timely delivery of goods.

3. Supply Chain and Logistics: The supply chain component involves managing the flow of materials, resources, and finished products. This includes sourcing raw materials, coordinating with suppliers, inventory management, and distribution logistics. Effective supply chain management ensures that the right materials are available at the right time, minimizing delays and reducing costs.

Interrelationships among Components:

The components of ABC Manufacturing are interrelated and interconnected, forming a system that works together to achieve the organization's objectives. Here are a few examples of interrelationships among these components:

1. Human Resources and Production Facilities: The production facilities rely on the skills and efforts of the employees. Human resources ensure that the right talent is hired, trained, and deployed in the production process. They also provide support and maintenance services to ensure the smooth functioning of the production facilities.

2. Production Facilities and Supply Chain: The production facilities rely on the timely availability of raw materials from the supply chain. Efficient coordination between production and supply chain teams is necessary to maintain optimal inventory levels and avoid production delays.

3. Supply Chain and Human Resources: The supply chain team collaborates with human resources to forecast demand, plan workforce requirements, and align production schedules accordingly. Effective communication and coordination between these components ensure that the production process meets customer demand and avoids excessive inventory or stockouts.

By viewing ABC Manufacturing through a systems perspective, we recognize that the organization is a complex interplay of various components working together to achieve a common objective. Understanding the interrelationships and dependencies among these components helps in identifying areas for improvement and optimizing the overall performance of the organization.

Answer:Dashen Bank s.c is a company where I am working in it. The company’s objective is to maximize its profit and become from the lists in best class banks in Africa. To achieve this objective it has its own system which contains the following components

• A banking software called FLEXCUBE which is the core software which accomplishes the majority of the banking day to day activities e.g. cash withdrawal, cash deposit, account opening general leger account postings etc.

• CATPS(card application tracking and processing system) is a component of a system which is used to capture ATM card applications  and authorize the processed/ captured applications in order to produce the cards

• Amole admin/internet banking application is used to create an access to the customers such that user name and passwords and and link bank accounts so customers can transfer money, make payments at home.

The above listed components have interrelation each other. E.g. in order to produce cards using CATPS, the customer must have a bank account with precise customer data such that signature, photo etc. so these stated things  i.e. account opening, signature and photo uploading activities are processed by FLEXCUBE software. In the same manner, in order to get an access to the bank account using amole/ internet banking, the customer must have properly opened bank account with customer signature and photo which is also processed by using FLEXCUBE software.

solve this challenge delay in payment of contribution by employee, by going through these steps, identify the problem, identify the alternative solution, evaluate alternative solution, select the best Alternative, implementation and follow up .in Zanzibar social security fund ​

Answers

To address the issue of delayed payment of contributions by employees to the Zanzibar Social Security Fund, it is crucial to follow a systematic approach.

How can the problem of delayed payment of contributions be addressed?

Firstly, the problem needs to be identified which is the delay in payment of contributions by employees. This delay will result in financial instability for the fund and may hinder its ability to provide social security benefits to its members in a timely manner.

The alternative solution to this problem could be implementing stricter enforcement measures and penalties for late payments. By imposing significant fines or penalties for delayed contributions, employees would be incentivized to make timely payments to the fund.

Read more about employee contribution

brainly.com/question/33045405

#SPJ1

Pooler Corporation is working on its direct labor budget for the next two months. Each unit of output requires 0.73 direct labor-hours. The direct labor rate is $11.60 per direct labor-hour. The production budget calls for producing 6,500 units in April and 6,300 units in May. The company guarantees its direct labor workers a 40-hour paid work week. With the number of workers currently employed, that means that the company is committed to paying its direct labor work force for at least 5,480 hours in total each month even if there is not enough work to keep them busy. What would be the total combined direct labor cost for the two months

Answers

Answer:

April= $63,568

May= $63,568

Total cost= $127,136

Explanation:

Giving the following information:

Each unit of output requires 0.73 direct labor-hours.

The direct labor rate is $11.60 per direct labor-hour. T

The company is committed to paying its direct labor work force for at least 5,480 hours in total each month even if there is not enough work to keep them busy.

First, we need to calculate the direct labor hours required for each month.

Direct labor hours:

April= 0.73*6,500= 4,745 hours

May= 0.73*6,300= 4,599 hours

Now, we can calculate the direct labor cost for each month:

Direct labor cost:

April= 11.6*5,480= $63,568

May= 11.6*5,480= $63,568

Your credit score has no effect on the interest you might receive on loans. O True O False​

Answers

Answer:

False

Explanation:

Question 3 (2 points)
Which of the following is NOT a way to balance a project?
..
O At the Enterprise Level
At the Business Case Level
.
O At the Program Level
At the Project Level

Answers

Answer:

1

Explanation:

at the bisiness casel level

RKJ Company has provided the following information: 100,000 shares of $5 par value common stock are authorized 64,000 shares have been issued 59,000 shares are outstanding The 64,000 shares of issued common stock were issued for $10 per share. Which of the following statements is correct?

a. Common stock is reported at $630,000 on the balance sheet.
b. Additional paid-in capital is reported at $260,000 on the balance sheet.
c. Common stock is reported at $350,000 on the balance sheet.
d. Treasury stock is reported at $45,000 on the balance sheet.

Answers

Answer:

$320,000

Explanation:

The computation is shown below:

= Issued shares of the common stock × par value per share

= 64,000 shares × $5

= $320,000

This $320,000 should be reported in the equity section of the balance sheet

Hence, this is the answer but the same is not provided in the given options

hence, the same is to be considered and relevant

Question 2 of 10
In a market economy, decisions about which goods are produced are based
on:
OA. what businesses believe will generate the most profits.
OB. what the local community has made for generations.
OC. what health care organizations suggest will be best for citizens.
OD. what the government decides is important for society.
SUBMIT

Answers

In a market economy decisions about which goods are produced are primarily based on what businesses believe will generate the most profits option a

What happens in a  market economy

in a market economy production decisions are made by private individuals and businesses based on the laws of supply and demand businesses seek to produce goods and services that they believe will be profitable and will sell well in the marketplace

consumers in turn make choices based on their own preferences and the prices of goods and services in the market

the role of the government in a market economy is generally limited to enforcing laws and regulations protecting property rights and providing public goods and services that the private sector cannot or will not provide efficiently

Read more on market economy here: https://brainly.com/question/1659498

#SPJ1

Phyllis makes a deal with her niece Stephanie that if Stephanie gave up gambling for two years, Phyllis would pay Stephanie $5,000. Stephanie gave up gambling for the required two years. Does this deal have valid consideration

Answers

Answer:

Yes .

Explanation:

I think so because Stphanie did what Phyllis asked , now she should get her well deserved $5,000 .

In which two ways can using critical-thinking skills help a person select a suitable career?

locating specific inventory tools to set achievable goals
identifying hobbies relevant to the process of exploring careers
evaluating the positive and negative aspects of a career choice
acquiring the training necessary to succeed in a specific career
setting specific, achievable career goals

Answers

Answer:

it's

Explanation:

evaluating the positive and negative aspects of a career choice cuz it hits you with a sentiment of your identity and the career you would fit in and makes you realize your choice

acquiring the training necessary to succeed in a specific career yeah it is true once you learn the skill it can be easy and you don't have to be tensed about what you're going in the job cause you know what skills in what time should you use

Diazlo Corporation has 10,000 shares of 7​%, $10 par cumulative preferred stock and 47,000 shares of common stock outstanding. Diazlo declared no dividends in 2017 and had no dividends in arrears prior to 2017. In 2018​, Diazlo declares a total dividend of $45,000. How much of the dividends go to the common​ stockholders?A. $44,000 B. $41,000 C. $47,000 D. None of above

Answers

Answer: None of above

Explanation:

Firstly, we calculate the annual dividend on the preferred stock which will be:

= 10,000 × 7% × $10

= 10,000 × 0.07 × 10

= $7000

Dividend paid to shareholders will be:

= $7000 × 2 = $14000

The dividend that goes to the common​ stockholders will now be:

= $47000 - $14000

= $33000

Therefore, the answer is none of the above

8
What are three advantages of corporations?

Answers

Answer:

Personal liability protection, business security and continuity

1 typewritten reviews of a Business Management, or Marketing
Article of the students choosing that appeared in the required Online
readings, You may also select articles from the New York Times.
The articles due on the assign due date. The News Article Review must
be printed out and attached to the student’s Typewritten review in Pdf.
The review must summarize the article in the student’s own words and
discuss how the subject matter of the News Article Review relates to
topics covered in the course.

THE ARTICLE SHOULD NOT BE
MORE THAN 14 DAYS OLD AND MUST BE RETRIVED FROM A
BUSINESS, OR MARKETING JOURNAL PUBLICATION

Answers

Explanation:

Title: "Digital Marketing Strategies for Small Businesses: A Case Study"

Article Source: Harvard Business Review

Summary:

The article "Digital Marketing Strategies for Small Businesses: A Case Study" discusses how small businesses can effectively utilize digital marketing strategies to compete in today's highly competitive business landscape. The case study presented in the article focuses on a small boutique clothing store that implemented various digital marketing tactics to increase their online visibility and drive more sales.

The article highlights the importance of having a strong online presence for small businesses, as consumers increasingly rely on digital channels to discover and purchase products and services. The case study outlines the steps taken by the boutique store, including optimizing their website for search engines, creating engaging social media content, and implementing email marketing campaigns to engage with customers.

The article also emphasizes the need for small businesses to adapt their digital marketing strategies based on changing consumer behaviors and market trends. For example, the boutique store in the case study shifted their focus to social media advertising when they noticed that their target audience was spending more time on social media platforms.

Relation to Course Topics:

The article aligns with several topics covered in the Business Management or Marketing course. It highlights the importance of digital marketing for small businesses and the need to adapt strategies to changing consumer behaviors, which are key concepts in modern marketing. The case study also provides practical examples of how small businesses can implement digital marketing tactics, such as search engine optimization, social media marketing, and email marketing, which are commonly covered in marketing courses.

The article also emphasizes the significance of understanding consumer behavior and market trends, which are important considerations in business management. It underscores the need for small businesses to continually assess and adjust their marketing strategies to remain competitive in the ever-evolving digital landscape.

Overall, the article provides a relevant and practical case study that showcases the application of digital marketing strategies for small businesses, making it a valuable resource for students studying business management or marketing.

Review:

The "Digital Marketing Strategies for Small Businesses: A Case Study" article is a well-written and informative piece that provides practical insights into how small businesses can effectively leverage digital marketing strategies. The case study presented in the article is relevant and relatable, making it easy to understand the challenges faced by small businesses in the digital marketing realm.

The article is concise, yet comprehensive, covering key concepts such as search engine optimization, social media marketing, and email marketing in a clear and understandable manner. The use of a real-life case study adds credibility and practicality to the article, making it more engaging for readers.

The author's writing style is engaging and easy to follow, with a good balance of theoretical concepts and practical examples. The article is well-structured, with clear headings and subheadings that make it easy to navigate and locate specific information.

One potential improvement could be the inclusion of more recent data or statistics to support the author's points and provide additional evidence of the effectiveness of the digital marketing strategies discussed. However, overall, the article is a valuable resource for students studying business management or marketing, as it provides relevant and practical insights into how small businesses can navigate the digital marketing landscape to achieve their business goals.

In conclusion, the "Digital Marketing Strategies for Small Businesses: A Case Study" article is a recommended read for students studying business management or marketing. It offers valuable insights into the challenges and opportunities of digital marketing for small businesses and provides practical examples that can be applied in real-world business settings. The article's alignment with course topics and its clear and engaging writing style make it a useful resource for students looking to deepen their understanding of digital marketing strategies.

If you benefit from an action you've taken, that means it must have been unethical.
Responses

True
False

Answers

The statement "If you benefit from an action you've taken, that means it must have been unethical" is false.

The statement that if you benefit from an action you've taken, it must have been unethical is not necessarily true. Ethics refers to the principles of right and wrong conduct, and whether an action is considered ethical or not depends on various factors, such as the intention behind the action, the consequences it brings, and the ethical frameworks or standards used to evaluate it.

It is possible for an action to be both beneficial and ethical. Many actions that benefit individuals or society at large can also align with ethical principles. For example, donating money to a charitable organization can be both beneficial in terms of helping those in need and ethical in terms of promoting fairness, compassion, and social welfare.

On the other hand, it is also possible for actions that benefit someone to be unethical. For instance, if someone gains personal advantage by deceiving or harming others, their benefit would be unethical because it comes at the expense of others' well-being or violates ethical principles such as honesty, fairness, or respect for others.

In summary, the relationship between benefit and ethics is not a direct correlation. While it is possible for actions to be both beneficial and ethical, it is also possible for actions to be unethical even if they result in personal benefit. Ethical evaluations require considering a broader perspective and assessing the underlying principles and consequences of the action, rather than simply focusing on personal gain.

for more such questions on unethical

https://brainly.com/question/18453407

#SPJ8

Suppose that a portfolio management company manages an investment fund. The fund
manager observes a bond in the market and intends to add it to the fund portfolio. The
bond has a 100.000 TL par value, 10% coupon rate (coupon payments are annual) and a
6-years maturity. The business model is to “hold-to-maturity”. The company purchases
the bond at the beginning of the year when the market yields are 8%. After exactly 3
years of investment, market yields increase to 12%. What would be the profit or loss
amount in the income statement for that third year?
a) 1.427,92 TL loss
b) 1.470,06 TL profit
c) 8.529.94 TL profit
d) 10.000 TL loss

Answers

Answer: The correct answer is (a) 1.427,92 TL loss.

Explanation:

To calculate the profit or loss for the third year, we need to determine the market value of the bond at the end of the second year and compare it to the par value of 100,000 TL.

At the beginning of the investment, the bond has a coupon rate of 10% and a market yield of 8%, so its price is:

PV = (10000/1.08) + (10000/1.08^2) + (110000/1.08^3) = 104,406.40 TL

After 3 years, the market yield has increased to 12%, so the bond's price would have changed to reflect this new yield. To calculate the new price, we can discount the remaining coupon payments and the par value at the current market yield:

PV = (10000/1.12^1) + (10000/1.12^2) + (10000/1.12^3) + (100000/1.12^3) = 88,572.08 TL

The market value of the bond at the end of the second year is 88,572.08 TL, which represents a loss compared to the par value of 100,000 TL:

Loss = 100,000 - 88,572.08 = 11,427.92 TL

Therefore, the correct answer is (a) 1.427,92 TL loss.

More about market value and par value :

https://brainly.com/question/29243888

https://brainly.com/question/29243888

Blending process Units of Product Percent of Conversion
Beginning work in process 150,000 80%
Goods started 310,000 100
Goods completed 340,000 100
Ending work in process 120,000 25

Required:
Compute the total equivalent units of production for conversion using the FIFO method.

Answers

Answer:

Number of equivalent units= 370,000

Explanation:

To calculate the cost of equivalent units using the FIFO (first-in, first-out), we need to use the following structure:

COST PER EQUIVALENT UNITS:

Beginning work in process = beginning inventory* %incompleted

Units started and completed = units completed - beginning WIP

Ending work in process completed= Ending WIP* %completed

=Number of equivalent units

Beginning work in process = 150,000*0.2= 30,000

Units started and completed = 340,000 - 30,000= 310,000

Ending work in process completed= 120,000*0.25= 30,000

Number of equivalent units= 370,000

As a stock analyst Mooch covers the common stock of GE, which sells for $11 per share and just paid a dividend of $.52. The best estimate Mooch can come up is that the dividends for GE will be $.55 and then $.605 for the next two years, with steady state annual growth rate of 10 percent thereafter. What required return per year for the common stock of GE must be?

Answers

If as a stock analyst Mooch covers the common stock of GE, which sells for $11 per share and just paid a dividend of $.52. The required return per year for the common stock of GE must be is 5%.

How to find the required return?

Let make use of Gordon Growth Model to calculate the required return per year for the common stock of GE.

Gordon Growth Model formula:

Required return = D1 / (P0) + g

Where:

D1 = next year's dividend = $.55

P0 = current price of the stock = $11

g = steady state growth rate of dividends =10%

Let plug in the formula

Required return = $.55 / ($11) + 0.10

Required return = 5%

Therefore  the required return per year for the common stock of GE is 5%.

Learn more about required return here:https://brainly.com/question/24301559

#SPJ1

STEP 5 Use practical examples from BRICK 'n TILE to differentiate between short and long-run costs. (10) TOTAL: [50]​

Answers

BRICK 'n TILE, a hypothetical company, can differentiate between short-run and long-run costs by considering examples such as immediate production costs (short-run) and investment in new production facilities (long-run).

Short-run costs refer to expenses that a company incurs in the immediate period, where some factors of production are fixed and cannot be easily adjusted. In the case of BRICK 'n TILE, short-run costs could include the costs of raw materials, labor, utilities, and maintenance for their existing production facilities. These costs are essential for the day-to-day operations and can be directly linked to the current level of production.

On the other hand, long-run costs encompass expenses that can be adjusted in the long term to adapt to changes in production levels and scale. For BRICK 'n TILE, an example of a long-run cost would be the investment in new production facilities or equipment. If the company decides to expand its operations or increase its capacity, they may need to construct a new manufacturing plant or purchase advanced machinery. These costs are incurred over an extended period and are associated with strategic decisions that affect the company's production capabilities in the long run.

Differentiating between short-run and long-run costs is crucial for effective financial planning and decision-making. Short-run costs help determine the immediate profitability of the company's operations, while long-run costs factor in the potential growth and expansion strategies. Understanding the distinction between these cost categories allows BRICK 'n TILE to make informed decisions regarding short-term production levels and long-term investment in infrastructure and technology.

For more questions on long run costs

https://brainly.com/question/29240975

#SPJ8

For most people, experiencing stress is
a normal
b. extraordinary
c. exciting
d. boring

Answers

A everyone gets stressed

Answer:

A. normal

Explanation:

In June 2015, the unemployment rate declined to 5.3 percent from 5.5 percent in May. The labor force participation rate also declined from May to June, from 62.9 percent to 62.6 percent. If the labor force participation rate had remained unchanged from May to June, the unemployment rate for June 2015 would be

Answers

Answer: A. greater than 5.3 percent because the value in the numerator of the formula for the unemployment rate would increase more than the value in the denominator.

Explanation:

The unemployment rate is calculated by dividing the number of those who are unemployed but actively seeking employment by the labor force.

= Unemployed / Labor force

If the labor force participation rate had remained unchanged then that would mean that the denominator for the unemployment rate did not change while unemployment did.

The unemployment rate will therefore be greater than 5.3% because the numerator which is the unemployment figure, would have increase more than the denominator.

importance of learning foreign language​

Answers

Answer:

The study of a foreign tongue improves the knowledge of one's own language: English vocabulary skills increase. Foreign languages expand one's world view and limit the barriers between people: barriers cause distrust and fear. Foreign language study leads to an appreciation of cultural diversity.

Explanation:

Answer:

if your asking why it is important its becuz it will open more opportunities

Other Questions
1-a. Prepare contribution format income statements for April. 1-b. Prepare contribution format income statements for May. 3. Compute the Racket Divisions break-even point in dollar sales for April. 4. Whether the break-even point would be higher or lower with Mays sales mix than with Aprils sales mix? 5. Assume that sales of the Standard racket increase by $21,000. What would be the effect on net operating income? What would be the effect if Pro racket sales increased by $21,000? Do not prepare income statements; use the incremental analysis approach in determining your answer. circle the correct terms for the reaction going from left to right. reactant a gains/loses and electron to become product B What do the conditions in factories in the mid-1800s suggest about the pros and cons of a laissez-faire market economy According to classical macroeconomic theory, changes in the money supply affect. somebody please help me X Company had 100,000 shares of common stock outstanding on January 1, 202 On September 30, 2021, X sold 48,000 shares of common stock for cash. X also had 10,000 shares of convertible preferred stock outstanding throughout 2021. The preferred stock is $100 par, 6%, and is convertible into 4 shares of common for each share of preferred. X also had 500, 8%, convertible bonds outstanding throughout 2021. Each $1,000 bond is convertible into 35 shares of common stock. The bonds sold originally at face value. Reported net income for 2021 was $300,000 with a 25% tax rate. Common shareholders received $3 per share dividends after preferred dividends were paid in 2021.Required: : (show the computing process)Compute basic and diluted earnings per share for 2021. active voice narrative What molecule is this? a patient has been recently admitted to the hospital. what indications, if observed, may suggest that the patient has dysphagia (difficulty swallowing)? The author's purpose for writing this article was probably to __________. Press enter to interact with the item, and press tab button or down arrow until reaching the Submit button once the item is selected A. demonstrate how young people can take action to safeguard animals and environments B. criticize young people who take independent action by interfering in natural habitats C. reassure young people that ecosystems around the world are being sufficiently protected D. provide a sequence of steps for young people to follow during habitat preservation estimated prevalence of acoustic cranial windows and intracranial stenosis in the us elderly population: ultrasound screening in adults for intracranial disease study. PLEASE HELP!A wool tapestry is 32 years older than a linen tapestry. Twenty years ago, the wool tapestry was twice as old as the linen tapestry. Find the present age of each.Answer choices:a. 83, 51b. 84, 52 c. 85, 53d. 86, 54e. 87, 55Explain in detail how you got to the answer. Please help . What is the audience of this quote how do you know ? In your own words what is Monroe saying ? What did the doctrine assert when it came to European interference in American affairs? Samir is an athlete who engages in moderate-intensity physical activity and weighs 79 kg. Based on this information, he should consume at least _____ g of protein per day A no Subtracted from 13 gives -15 A carrot has grown 5 inches above the ground and goes 6 inches below the ground. How tall is the whole carrot plant? Job-lock has been a serious problem for those with pre-existing conditions, because they cannot move onto another/new job out of fear of losing their coverage. The following laws have significantly reduced this problem. Please choose all that apply. Group of answer choices A) PSDA B)PPACA C)Hill Burton Act D)ADA E)HIPAA What is the boiling point in Celsius ?? What takes into account the amount of resources used to produce the desired output? ILL MARK U BRAINLIESTCenterpoint Energy charges a service fee of $4.95 plus $0.16 per Kilowatt hour (kWh) usage. Which equation can be used to find y, the total cost of the electric bill, if x represents the kWh usage?a. y = 0.16xb. y = 0.16 + 4.95xc.y = 4.95 + 0.16xd. y = 0.16(x + 4.95)